3-month T-bills At 2-year Low

BRIEFCASE

December 17, 1996

Interest rates on short-term Treasury securities were mixed in Monday's auction with the rate on three-month bills falling to the lowest level in more than two years. The Treasury Department sold $13 billion in three-month bills at an average discount rate of 4.76 percent, down from 4.83 percent last week. The rate on six-month bills rose to 4.99 percent, up from 4.97 percent last week with $13 billion sold. The new discount rates understate the actual return to investors - 4.88 percent for three-month bills with a $10,000 bill selling for $9,879.70 and 5.19 percent for a six-month bill selling for $9,747.70.